Thursday, October 30, 2008

Hi Friends, With stock market plunge,We hear so much about the losses what Traders and Investors incurred due to this NIAGRA fall what we witnessed in Stock Markets.Investors ,Traders are so tensed,stressed that usually full day goes thinking what next:).Markets Tend to overshoot in both directions let it be the year 2007 bull whichlooked as if the rise would be perpetual.Same with 2008 BEAR which looks like this fall would never end:).Relax BULL or BEAR overshoot happens both sides,If you find it too stress full take some time out get freshened up and come back again.May be the following story would help you,Keep reading!!

A Professor began his class by holding up a glass with some water in it. He held it up for all to see & asked the students “How much do you think this glass weighs?"

FRANKFURT, Germany - Shares of Volkswagen AG jumped an eye-popping 82 percent on Tuesday after a similar surge the day before, leading German financial regulators to say they would investigate.

Speculation on the reason for the rise centered on a reduced number of shares available and on hedge funds needing to unwind bad bets on the share's direction. The surge came amid reports that big investors had been forced to buy scarce shares to get out of mistaken bets the shares would fall

On Sunday, Porsche Automobile Holding SE, which owns the company that makes the 911 and Cayenne vehicles, said it increased its stake in VW to 42.6 percent plus enough options to give it 74.1 percent. Since the German state of Lower Saxony, where Volkswagen's headquarters is based, holds just over 20 percent of the company's shares, as little as 6 or 7 percent would be freely available.

That started pushing VW shares sharply higher. On Monday, they were up nearly 147 percent to close at 520 euros ($651.35) compared with Friday's closing price of 210.85 euros ($264.41).

This is one example when Bear got it wrong totally.After triggering a near-tripling of Volkswagen's share price over the past two days, Porsche could be in for a windfall: the automaker said on Wednesday it planned to cash in some 5.0% of its indirectly-held Volkswagen stake in order to give red-faced short-sellers some room to breathe.

Back in 1997, a minor currency crisis in Thailand rattled a few regional market players. But the rest of the world ignored it ... at first. They said it wouldn't matter to the U.S. and would be just a blip on the radar screen.

But soon the decline in Thailand's currency, the baht, accelerated. It went from a gentle slide to a full-scale rout. Before long, currencies in the Philippines, Indonesia, and South Korea began to fall out of bed.

Then regional stock indices later crashed. Our Dow suffered what was then one of the largest point declines on record. And the International Monetary Fund was forced to step in and bail out several economies — to the tune of tens of billions of dollars.

It was a scary time. But compared to what is happening now, the 1997 crisis looks like a day at the beach. Right now ... in far-flung corners of the world as diverse as Iceland, Hungary, Argentina, India, and elsewhere ...

Currencies aren't just declining. They're crashing.

Stock markets aren't just falling. They're collapsing.

Foreign investors aren't just walking for the exits. They're running ... and trampling anyone in their paths.

You may not keep a chart of the Hungarian florint, that nation's currency, on your screen. You probably don't look at Argentina's Merval Index very often, if ever. And you may have never touched an Icelandic krona in your life.Crisis in Hungary, Argentina, Iceland, oh my!

In Hungary, the currency has been plunging for weeks on end as global investors pare risk and withdraw funds from higher-risk emerging markets. The forint recently traded at 214 against the dollar, a huge decline from the 143 level back in July. In other words, one U.S. dollar buys many more forints than it did a few months ago.

That prompted a serious reaction from the Magyar Nemzeti Bank, Hungary's central bank this week. It jacked up the nation's benchmark rate to 11.5% — an increase of a full three percentage points — to defend the currency and stem the flight of capital.

Meanwhile, in Argentina, the country said it plans to seize $29 billion of private pension funds. This caused bond yields in the country to surge. The Merval stock index plunged 11% on Tuesday, then another 10% on Wednesday. It is down more than 55% on the year.

The government last raided pension fund investments to service its debt in 2001. But it didn't help. Argentina then defaulted in a move that sent shockwaves throughout the global capital markets.

As for Iceland, the market has all but collapsed. The country's three biggest banks have been nationalized. Its currency has lost more than half its value in the past two years. It's being forced to pursue a multi-billion dollar bailout from its Scandinavian neighbors and the IMF.

The most shocking of all: Its benchmark stock market gauge, the OMX ICEX 15 index, has plunged 89% year to date! To put that in perspective, if our Dow did the same thing this year, it would be trading around 1,460.

Back home here in India, we are too running into trouble. Overseas funds dumped a record $12 billion of Indian shares so far this year. Foreign exchange reserves have dwindled by $42 billion as the Indian rupee has imploded. It recently slumped from 39.20 against the dollar to 49.50 — a record low.

Bottom line: The credit virus is now spreading its sickness to the four corners of the world.Iceland's stock market has all but collapsed as the credit virus spreads worldwide.

I remember till about a month back FM was quite confident about INDIAN MARKETS he used to address the press with the same statement again and again "We are insulated to credit crisis"Presently hes not to be seen since last few days where we lost 10-20% in a matter of days.

The most recent comment of PM "yes credit crisis is hurting INDIA".Well why all this when we have plunged,Why they were so confident a month back?

Tuesday, October 28, 2008

Few Investment stocks which you can buy on Diwali muhurat trading as anINVESTMENT.

1 RANBAXY

2.SUZLON

3.RELIANCE

4.L&T

5.BHARTI

Remember these are investments and should be held for atleast a year.I expect good appreciation in these stocks in the next one year at least.I purposely gave index stocks as that's where more action would be.Keep this in mind put 20% in each stock.

DISCLAIMER: This site does not offer investment advice. All opinions in this blog are intended for educational purpose only and none of us are liable for any potential damages that may be incurred from this information. Please excercise discretion and due diligence in making your investment decisions.